My City July 2021

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In fact, 80% of Bitcoin is currently held by long-term investors who will not sell.And scarcity is not just driving investors to hold onto their coins, it is driving massive interest in acquiring more coins through large-scale mining,which has further driven up the price (Crewcial Partners, 2021). Another reason is that they are relatively new, so they have no long-term track record to help us gauge their performance potential.Also, their values are often tied to investor sentiment – that is how an investor feels about an asset and its price at a particular moment in time – rather than fundamentals, like what the asset is worth.

THERE ARE 4MAINRISKS INVOLVED WITHOWNING CRYPTOCURRENCY LIQUIDITY

Cryptocurrency The hottest thing in investment news lately is cryptocurrency – a digital or virtual means of exchange.There are more than 67,000 cryptocurrencies today; among the better known are Bitcoin,Dogecoin, Ethereum, XRP,Tether and Litecoin. Bitcoin, the first decentralized cryptocurrency, was originally created in 2009 by an individual who goes by the name Satoshi Nakamoto. Cryptocurrency uses blockchain technology to verify and publicly record buys and sells. Information in a blockchain is recorded in an unchangeable electronic “block”and the block is linked to the previous block – so essentially, it is one big electronic charmbracelet that cannot be changed. Blockchain also is responsible for the rise in NFTs – non-fungible tokens – a “thing” that is unique and irreplaceable.Certain digital artwork and video clips have now been created as NFTs, which means that the person who holds them is the only person who has them (kind of like a very rare Pokémon trading card.) Some people are willing to pay high dollar amounts for NFTs with the idea that it will be a new form of art collecting. Unlike traditional asset classes, cryptocurrencies and NFTs lack intrinsic economic value and generate no cash flows, such as interest payments or dividends, so they are typically not a good substitute for “regular” investments like stocks and bonds. So why is everyone talking about them? It is due, in part, to scarcity. One of Bitcoin’s features is that the supply is limited.There is a hard cap on its circulation. Scarcity motivated owners to hold on to their Bitcoins.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. StephensWealth Management Group is not a registered broker/dealer and is independent of Raymond James Financial Services. Prior tomaking an investment decision, please consult with your financial advisor about your individual situation.The prominent underlying risk of using bitcoin as amediumof exchange is that it is not authorized or regulated by any central bank. Bitcoin issuers are not registeredwith the SEC, and the bitcoin marketplace is currently unregulated. Bitcoin and other cryptocurrencies are a very speculative investment and involves a high degree of risk. Investorsmust have the financial ability, sophistication/experience, and willingness to bear the risks of an investment, and a potential total loss of their investment. Securities that have been classified as Bitcoin-related cannot be purchased or deposited in Raymond James client accounts. Cryptocurrencies are stored in “digital wallets”on a holder’s computer or phone, or in the cloud.The wallet serves as a virtual bank account that enables holders to pay for goods and services or simply store the currency in hopes of an increase in value.To access your crypto, you need a password.According to the NewYorkTimes , around 20% of the existing 18.5 million bitcoins are lost or stranded in wallets. Part of the reason for the loss or inability to access these bitcoins is that the owner has lost their password.And there is no way to simply reset a cryptocurrency password – the contents remain locked forever. x Cryptocurrencies are unregulated and no party is required to accept payments in virtual currency.As a result, certain market conditions might make it difficult or impossible to sell quickly at a reasonable price. REGULATORY Cryptocurrencies essentially compete with currencies issued by governments.At some point, governments may seek to regulate or restrict cryptocurrencies, or issue a digital version of their own currencies. Such developments could adversely affect cryptocurrency prices. PRICING Cryptocurrencies trade in decentralized markets. In addition, cryptocurrency exchanges and platforms do not feature the regulations, controls and investor protections available in traditional stock, options and futures markets. For these reasons, there is no unifying single pricing mechanism that reflects digital currency values. PASSWORD LOSS

Jill Carr is a CERTIFIED FINANCIAL PLANNER and CPA with Stephens Wealth Management Group, located at 5206 Gateway Centre, Suite 300 Flint, MI. Phone 810.732.7411. Any opinions are those of Jill Carr and not necessarily those of RJFS or Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.